Israeli startup Chain Reaction announced its latest round of funding to focus exclusively on blockchain chips.
Tel Aviv-based Israeli startup Chain Reaction has announced its intentions to produce blockchain chips on a large scale using the proceeds of its latest round of funding. They raised $70 million in the round, which will be used to expand their engineering team and focus on the development of blockchain chips.
Explaining how the blockchain chips would allow users to work on data even while the chips were encrypted, Alon Webman, the founder and CEO of Chain Reaction, said, “Today, if you have data (which) is encrypted into the cloud and in order to do any data operation or data analytics, do A.I., you have to decrypt the data. The moment the data is decrypted, it can be attacked by a malicious user to read it, to steal it, or even to change it.“
The CEO of the Israeli startup said the blockchain chip could solve this problem by being a ‘fully homomorphic encryption’ chip. Security concerns were the main reason companies and governments could not fully use cloud services.The Israeli startup’s encrypted chip would allow access to encrypted data and help solve this problem. They would also start large-scale production of the Electrum, its blockchain chip used for fast hashing and mining cryptos, in the first quarter of 2023.
Webman has extensive experience with chips, earlier founding a company involved in chip production called Mellanox Technologies, which was eventually sold to Nvidia. The adoption of blockchain technologies by companies and individuals has increased, and it is expected to grow further.